Union Budget 2021: LIC IPO in 2021-22; FDI in insurance increased

WION Web Team
New Delhi Updated: Feb 01, 2021, 12:45 PM(IST)

The rise in FDI was attributed to an improved environment for business, reduced red tape and progressive legislation. Photograph:( Others )

Story highlights

"The Pipelines of GAIL (India) Ltd, Indian Oil Corp (IOC) and HPCL will be monetised, finance minister Nirmala Sitharaman said while presenting the Union Budget

India's finance minister Nirmala Sitharaman while presenting the Budget before Parliament on Monday said that Life Insurance Corporation(LIC) will come up with an IPO in 2021-22.

Also Read: LIVE Union Budget 2021

BPCL, Air India, IDBI, SCI and Concor disinvestment will be completed in 2021-22, India's finance minister announced. The finance minister announced the undertaking of disinvestment of two PSBs and one general insurance companies apart from IDBI bank in the financial year 2021 with legislations amendments to be introduced in this session.

"The Pipelines of GAIL (India) Ltd, Indian Oil Corp (IOC) and HPCL will be monetised," the finance minister said.

2021 Budget for banking sector

The finance minister said asset reconstruction and management company will be set up for stressed assets of banks. The government proposed further recapitalisation of state-owned banks earmarking Rs 20,000 crore.

"Barring four strategic areas, PSUs in other sectors will be divested,"  the finance minister said while announcing the new disinvestment policy while adding that  NITI Aayog will be asked to work on the next list of central public sector companies for disinvestment.

The finance minister said that the definition of small companies will be revised by raising the capital base to Rs 2 crore from the current limit of Rs 50 lakh.

Insurance sector Budget 2021-22

The minister said that Foreign Direct Investment(FDI) in insurance will be increased to 74 per cent from 49 per cent.

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